UAE leads in sustainable investment allocation as green finance momentum builds
SARA ALZAABI (ABU DHABI)Reflecting the UAE's leadership in green finance, investors in the country allocate an average of 27% of their portfolios to sustainable investments — the highest among eight global markets surveyed in a new report. This share is expected to rise to 36%, underscoring a growing shift toward impact-driven finance.These figures were based on Standard Chartered's latest Sustainable Banking Report 2025, drawn on the insights of 1,600 high-net-worth investors across eight markets, including the UAE, Hong Kong, Mainland China, India, South Korea, Taiwan, Malaysia, and Singapore. UAE investors' heightened interest in sustainability 'can also be seen through our conversations, especially with our ultra-high-net worth clients', said Bongiwe Gangeni, Head of Wealth and Retail Banking for Europe, Middle East and Africa at Standard Chartered.'We are seeing this momentum translating into actions, with many investors shifting capital to sustainable investments — a trend that is likely to continue,' Gangeni said in the report. Majority of high-net-worth investors in the country (85%) have expressed interest in sustainable investing, and 86% in transition investments, according to the survey. Across the globe, results show that interest in transition investing (87%) now surpasses that in sustainable investing (83%). The report defines transition investing as putting capital into companies — especially those in high-emission or hard-to-abate sectors such as shipping, agriculture, and steel — that are actively working to reduce their carbon footprint. This strategy not only facilitates the shift toward a low-carbon economy but also presents opportunities for sustainable long-term growth and returns.'Investors are primarily drawn to transition investments due to the potential for positive social and environmental impact (55%), followed by the prospect of improved financial returns (53%) and reflecting personal values (53%),' the report said, citing UAE data. Among the eco-themes that have captured the interest of UAE investors are green hydrogen (51%), carbon markets (48%), and carbon capture and storage (47%), it added. The sharper focus on green investments reflects the country's broader leadership in sustainable finance.The UAE has emerged among the leading countries in the global energy transition — targeting Net Zero by 2050 and aiming to reduce emissions by 47% from 2019 levels by 2035. Its financial sector has committed to mobilising $272 billion in sustainable finance by 2030.Ongoing initiatives like the UAE Sustainable Finance Working Group — tasked with developing a unified taxonomy of sustainable activities — are set to provide greater clarity and structure for companies, banks, and investors alike.
'These developments are expected to further drive awareness and interest in the transition journey,' Gangeni said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
13 hours ago
- Zawya
CORECTION: Adesina reaffirms commitment to Africa's development as his presidency of the African Development Bank nears end
Dr Akinwumi Adesina says his passion to mobilize global capital for Africa's development will continue way beyond his presidency of the African Development Bank ( which ends on 1 st September 2025. In a keynote speech titled 'Tilting Global Capital for Unlocking Investment Opportunities in Africa', delivered at the Standard Chartered Africa Summit on July 31, in Lagos, Adesina said, 'Together, let us tilt global capital to unlock Africa's assets. As I step into a new future, you can be sure this will be my focus! For I will always have Africa in my heart and in my sight.' The Standard Chartered Africa Summit, with the theme, 'Africa to the Globe: Innovation, Resilience, and Growth', brought together corporate leaders, policymakers, investors and other stakeholders. Attendees included Standard Chartered's Co-Heads of Corporate&Investment Banking, Sunil Kaushal and Roberto Hoornweg; Chief Executive Officer of Standard Chartered Bank Nigeria, Dalu Ajene; Nigeria's Minister of Trade and Investment, Dr. Jumoke Oduwole; Africa's richest man, Aliko Dangote; Hakeem Belo-Osagie, Chairman, FSDH Group and Senior Lecturer at Harvard Business School; and award-winning author, Chimamanda Adichie. Adesina kicked off by alluding to his signature optimism about Africa's prospects. 'When I was approached to consider delivering the keynote speech, I did not hesitate. How can someone known as 'Africa's Optimist in Chief' not accept to speak on Africa!', he said. Highlighting the African Development Bank's focus on bold financial innovation in the last decade, Adesina declared, 'The African Development Bank is not just waiting for more capital, we are innovating to do more with the capital we have. Through our balance sheet optimization initiatives, we are stretching every dollar of risk capital further. Our ambition is threefold: free up capital, crowd in investors and amplify development impact.' He outlined several ambitious and innovative financing solutions pioneered by the African Development Bank, supported by its AAA rating which it has maintained over the last decade: Over $102 billion in low-cost financing to Africa since 2015 Capital raise from $93 billion in 2015 to $318 billion in 2024, the highest in the Bank's sixty-year history Spearheading, in partnership with the Inter-American Development, the rechanneling of the IMF's Special Drawing Rights (SDRs) to multilateral development banks—a move that will of the rechanneled SDRs as hybrid capital, which can be leveraged by 4-8 times. The Africa Investment Forum, launched by the Bank in collaboration with strategic partners, has mobilized over $225 billion in investment interest across infrastructure, energy, agribusiness, manufacturing and other critical sectors, since 2018 The biggest social bond issuance by multilateral development banks, amounting to $14 billion in the past eight years. $10 billion of long-term global benchmark bonds issued in 2025 alone to finance projects across Africa The first-ever synthetic securitization of a non-sovereign portfolio by a multilateral development bank, involving the transfer of mezzanine risk of a $1 billion portfolio of private sector loans. The first-ever private sector hybrid capital transaction by a multilateral development bank, valued at $750 million—with over 275 investors participating with a book order of $5.1 billion, making it the largest ever book order achieved by the African Development Bank. A Room to Run Sovereign offering that created an estimated $2 billion in new sovereign lending headroom 16 partial credit and partial risk guarantees valued at close to $3 billion, mobilizing $ 5 billion for the continent A $250 million partial credit guarantee that allowed Egypt to raise the first ever Panda Bond by an African country on the Chinese capital market, valued at $500 million. Adesina praised Standard Chartered Bank's successful partnership with the African Development Bank's successful partnership, which notably delivered a partial credit guarantee for Côte d'Ivoire in 2023 — a deal that won 'Sovereign Syndicated Loan Deal of the Year' at the 2025 Bonds, Loans&ESG Capital Markets Africa Awards in Cape Town, South Africa, in April. 'The Standard Chartered Bank participated as the sole lender in the 2023 Cote d'Ivoire's sustainable loan partial credit guarantee transaction. The African Development Bank was able to unlock €533 million from the Standard Chartered Bank in support of the country's financing needs.' He also congratulated Standard Chartered on being named Best Transaction Bank at the Asset Triple A Treasurise Awards in Hong Kong. 'Your record breaking 127 accolades reflects an exceptionally strong track record of excellence in banking and finance, globally.' Adesina urged global financial institutions to partner more strategically with the African Development Bank and other multilateral development banks, to scale up capital flows to Africa. He called for greater use of risk mitigation and credit enhancement instruments, mainstreaming of best practices in Environmental, Social and Governance (ESG), and increased collaboration to scale up local currency financing solutions. Adesina's delegation included the Bank Group's Vice President for Private Sector, Infrastructure and Industrialization Solomon Quaynor, and the Director General of the Nigeria Country Department, Dr. Abdul Kamara. The African Development Bank's current active portfolio in Nigeria is the largest in the Bank, valued at $5.1 billion and comprising 52 operations, equally distributed between the public and private sectors, with 26 projects each. National operations account for 84% of the portfolio, while multinational operations constitute the balance of 16%. The Bank Group is set to establish a Youth Entrepreneurship Investment Bank in Nigeria, as part of a pan-African portfolio designed to create and finance entrepreneurship opportunities for young Africans. The Bank is also rolling out Phase 1 of its Special Agro-Industrial Processing Zones across 8 States, including the Federal Capital Territory. Construction has already begun in four States of Kaduna, Cross River, Oyo and Ogun. Phase 2, which will cover the remaining 28 States, is scheduled to take off from September 2025. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Photos: ( Media Contact: Tolu Ogunlesi Communication and External Relations African Development Bank Email: media@
Khaleej Times
13 hours ago
- Khaleej Times
UAE economy to grow 5% in 2025, says Standard Chartered
The UAE economy will grow five per cent this year and four per cent over the next two years, according to forecasts by Standard Chartered. The global bank's growth forecast for this year is higher than the Central Bank of UAE's projection of 4.4 per cent for 2025, but less than 5.4 per cent predicted for the next year. The lender projected that the inflation in the country would stay at three per cent for three consecutive years. According to the UAE Central Bank, inflation in the UAE was 1.1 per cent in March 2025, driven primarily by an increase in non-tradeable inflation. It projected a current account balance of seven per cent of GDP for 2025, increasing to eight per cent next year and 10 per cent in 2027. Manpreet Gill, chief investment officer of Africa, Middle East and Europe, Standard Chartered, said the long-term view on the UAE and the Gulf region is being a growth bright spot. 'We continue to observe that geopolitical risks can lead to short-term sentiment jitters, but they do not appear to influence long-term trends in markets or investment flows. For this region, the impact was perhaps most visible in oil prices, which are now largely back to where they were before tensions erupted. The long-term focus remains very much on the region being a growth bright spot in a world where headline growth remains tepid in many regions,' Gill told Khaleej Times. However, Standard Chartered projected that the oil oversupply remains the dominating theme. 'We expect West Texas Intermediate (WTI) to trade in a range around $65 per barrel over the next 3-12 months. Geopolitical risks may result in temporary spikes in oil prices,' it said. 'A standalone demand-supply outlook continues to argue for an oversupplied oil market, which is behind our $65 a barrel forecast for WTI over 6-12 months. Geopolitics is a clear upside risk — while the extent of excess supply and Opec+ spare capacity can help offset this, near-term spikes in prices cannot be ruled out,' said Standard Chartered in its Global Market Outlook report.
Zawya
a day ago
- Zawya
Adesina reaffirms commitment to Africa's development as his presidency of the African Development Bank nears end
Dr Akinwumi Adesina says his passion to mobilize global capital for Africa's development will continue way beyond his presidency of the African Development Bank ( which ends on 1 st September 2025. In a keynote speech titled 'Tilting Global Capital for Unlocking Investment Opportunities in Africa', delivered at the Standard Chartered Africa Summit on July 31, in Lagos, Adesina said, 'Together, let us tilt global capital to unlock Africa's assets. As I step into a new future, you can be sure this will be my focus! For I will always have Africa in my heart and in my sight.' The Standard Chartered Africa Summit, with the theme, 'Africa to the Globe: Innovation, Resilience, and Growth', brought together corporate leaders, policymakers, investors and other stakeholders. Attendees included Africa's richest man, Aliko Dangote; Nigeria's Minister of Trade and Investment, Dr. Jumoke Oduwole; Hakeem Belo-Osagie, Chairman, FSDH Group and Senior Lecturer at Harvard Business School; and award-winning author, Chimamanda Adichie. Adesina kicked off by alluding to his signature optimism about Africa's prospects. 'When I was approached to consider delivering the keynote speech, I did not hesitate. How can someone known as 'Africa's Optimist in Chief' not accept to speak on Africa!', he said. Highlighting the African Development Bank's focus on bold financial innovation in the last decade, Adesina declared, 'The African Development Bank is not just waiting for more capital, we are innovating to do more with the capital we have. Through our balance sheet optimization initiatives, we are stretching every dollar of risk capital further. Our ambition is threefold: free up capital, crowd in investors and amplify development impact.' He outlined several ambitious and innovative financing solutions pioneered by the African Development Bank, supported by its AAA rating which it has maintained over the last decade: Over $102 billion in low-cost financing to Africa since 2015 Capital raise from $93 billion in 2015 to $318 billion in 2024, the highest in the Bank's sixty-year history Spearheading, in partnership with the Inter-American Development, the rechanneling of the IMF's Special Drawing Rights (SDRs) to multilateral development banks—a move that will of the rechanneled SDRs as hybrid capital, which can be leveraged by 4-8 times. The Africa Investment Forum, launched by the Bank in collaboration with strategic partners, has mobilized over $225 billion in investment interest across infrastructure, energy, agribusiness, manufacturing and other critical sectors, since 2018 The biggest social bond issuance by multilateral development banks, amounting to $14 billion in the past eight years. $10 billion of long-term global benchmark bonds issued in 2025 alone to finance projects across Africa The first-ever synthetic securitization of a non-sovereign portfolio by a multilateral development bank, involving the transfer of mezzanine risk of a $1 billion portfolio of private sector loans. The first-ever private sector hybrid capital transaction by a multilateral development bank, valued at $750 million—with over 275 investors participating with a book order of $5.1 billion, making it the largest ever book order achieved by the African Development Bank. A Room to Run Sovereign offering that created an estimated $2 billion in new sovereign lending headroom 16 partial credit and partial risk guarantees valued at close to $3 billion, mobilizing $ 5 billion for the continent A $250 million partial credit guarantee that allowed Egypt to raise the first ever Panda Bond by an African country on the Chinese capital market, valued at $500 million. Adesina praised Standard Chartered Bank's successful partnership with the African Development Bank's successful partnership, which notably delivered a partial credit guarantee for Côte d'Ivoire in 2023 — a deal that won 'Sovereign Syndicated Loan Deal of the Year' at the 2025 Bonds, Loans&ESG Capital Markets Africa Awards in Cape Town, South Africa, in April. 'The Standard Chartered Bank participated as the sole lender in the 2023 Cote d'Ivoire's sustainable loan partial credit guarantee transaction. The African Development Bank was able to unlock €533 million from the Standard Chartered Bank in support of the country's financing needs.' He also congratulated Standard Chartered on being named Best Transaction Bank at the Asset Triple A Treasurise Awards in Hong Kong. 'Your record breaking 127 accolades reflects an exceptionally strong track record of excellence in banking and finance, globally.' Adesina urged global financial institutions to partner more strategically with the African Development Bank and other multilateral development banks, to scale up capital flows to Africa. He called for greater use of risk mitigation and credit enhancement instruments, mainstreaming of best practices in Environmental, Social and Governance (ESG), and increased collaboration to scale up local currency financing solutions. Adesina's delegation included the Bank Group's Vice President for Private Sector, Infrastructure and Industrialization Solomon Quaynor, and the Director General of the Nigeria Country Department, Dr. Abdul Kamara. The African Development Bank's current active portfolio in Nigeria is the largest in the Bank, valued at $5.1 billion and comprising 52 operations, equally distributed between the public and private sectors, with 26 projects each. National operations account for 84% of the portfolio, while multinational operations constitute the balance of 16%. The Bank Group is set to establish a Youth Entrepreneurship Investment Bank in Nigeria, as part of a pan-African portfolio designed to create and finance entrepreneurship opportunities for young Africans. The Bank is also rolling out Phase 1 of its Special Agro-Industrial Processing Zones across 8 States, including the Federal Capital Territory. Construction has already begun in four States of Kaduna, Cross River, Oyo and Ogun. Phase 2, which will cover the remaining 28 States, is scheduled to take off from September 2025. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Photo ( Media Contact: Tolu Ogunlesi Communication and External Relations African Development Bank Email: media@
